CIBIL (Credit Information Bureau of India Limited)
CIBIL is India’s leading credit information company, now known as TransUnion CIBIL. It is not just a credit reporting agency but a global risk information provider that offers services to businesses like analytics and consulting, fraud and ID management, CIBIL score, portfolio and collections management, CIBIL microfinance report and more. Individuals can also get a subscription to CIBIL to get regular credit reports, rectify errors and resolve disputes with lenders.
CIBIL is known for maintaining one of the largest collections of consumer information at global level, with a total of over 550 million individuals and businesses. CIBIL’s mission is to provide credit information that will help businesses grow faster and at the same time give cheaper and quicker credit to the people. A person’s CIBIL Score is his financial report card which helps him strategize his credits judiciously. CIBIL is also committed to bringing financial literacy in India along with inclusion and protection.
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CIBIL – Company Milestones
In the year 2000, TransUnion CIBIL was incorporated as per the recommendations made by the RBI Siddiqui Committee. After four years, credit bureau services were launched in India, 2 years after which the commercial credit bureau operations started.
CIBIL Score was introduced in 2007 as India’s first credit scoring model for banking and financial institutions in the country. Year 2010 witnessed the launch of CIBIL Mortgage Check’- the first centralized mortgage database in the country, and ‘CIBIL Detect’- India’s first repository of credit information on high-risk activities. It was only in 2011 that individual consumers were given access to CIBIL report. In the year 2016, TransUnion acquired 82% stake in CIBIL and its name was changed to TransUnion CIBIL.
How does CIBIL work?
CIBIL is licensed by the Reserve Bank of India and is governed by the Credit Information Companies (Regulation) Act of 2005. Every month, banks submit the data related to their customers such as the loans outstanding, repayment trends, etc. to CIBIL on the basis of which it determines the CIBIL Rank for individuals and Company Credit Report (CCR) for the business consumers. With help of CIBIL Score, lenders can evaluate the borrowing capability of an individual or a company and offer loans accordingly.
CIBIL Score is a three digit number ranging between 300-900, with 300 being bad and 900 being good. So the closer you are to 900, higher will be your chances of loan approval. Individuals should also check CIBIL Score online to determine their credibility and then apply for loans. Checking in advance is always better because loan rejections also have a negative impact on your credit profile.
What is the benefit of being a CIBIL member?
CIBIL also gives access to individual users. One can create an account on CIBIL which is a subscription based service and provides you with the following benefits
Monitor your CIBIL score. Know how different loans and repayments affect your credit score and proceed smartly. Higher the CIBIL score more will be the chances of future loan approval.
You can also apply for pre-approved loans and credit cards facilities offered by leading lenders. A good CIBIL score allows you to negotiate a competitive rate.
A subscription to CIBIL will make it easier for you to rectify errors by going online. Disputes with banks or NBFCs can be resolved and a rectified report will be sent to you when the changes are accepted by the lender.
This subscription also allows you to share remarks with your lenders.
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What products and solutions does CIBIL provide to businesses?
As said before, CIBIL is more than just a credit reporting agency. Although it started out with credit reporting, it now offers a comprehensive range of solutions, such as
Credit Reporting- CIBIL offers comprehensive credit reporting solutions to banks and NBFC on the basis of highly predictive data used by the customer to arrive at the CIBIL status of the customer. This involves an in-depth analysis of a consumer’s credit history, repayment patterns, etc. after which his CIBIL report is generated. This information is used by the banks and NBFCs to derive the credit worth of a customer and strategize in a more prudent way.
Analytics and Consulting- In this rapidly-evolving market, access to better information and knowledge is the key to growth. CIBIL provides all-inclusive analytics and consulting services to a wide range of organizations which gives them a competitive advantage and allows them to make smarter decisions.
Customer Acquisition- Apart from customer information, CIBIL also helps organizations engage and retain the best customers. The customer acquisition solutions by CIBIL allows companies to have a greater access to knowledge, data and analytics related to their customer base which, in turn, lets them capitalize on the opportunities and make better informed decisions.
Fraud and ID Management- The ever-changing financial market makes it imperative for the organizations to keep a sharper eye on possible frauds. The traditional risk management tools are not enough to detect fraud and inefficiencies in the modern world. CIBIL’s Fraud and ID Management solutions assist the organizations in assessing risk and finding the right customers.
Portfolio Management- It is very important to understand the risks in your portfolio and manage it accordingly. The portfolio management solutions offered by CIBIL help a CIBIL consumer in adjusting his strategies and increasing profitability. This service assists them in monitoring the changes closely and choosing the next course of action in a judicious manner.
Collections Management- This solution provided by CIBIL allows banks and financial institutions to track down the bad debts and manage their collections more efficiently. The information provided will let them easily predict the debtors’ behaviour, reduce bad debts and control operational costs.
CIBIL- Featured Products for Businesses
CIBIL Score- CIBIL offers India’s most trusted credit score model, that is, CIBIL Score. A CIBIL Consumer is mostly a bank or a financial service provider. These companies give out loans and it is extremely important for them to know which customer is likely to manage his loans responsibly. CIBIL studies the borrower’s loans and repayment patterns and predicts whether he/she is likely to default in the near future. This minimizes risks for the financial corporation and increases their profitability.
CIBIL Commercial Report- Through this product, banks can run a CIBIL Score check for commercial borrowers. They usually take larger amounts of loans and hence pose a greater risk for the lender. Hence, the lenders check CIBIL scores of commercial borrowers to evaluate their financial responsibility and make informed lending decisions. Commercial borrowers include private limited companies, public limited companies, proprietorship and partnership firms.
CIBIL Consumer Report- CIBIL offers well-researched data about potential borrowers to the banks and NBFCs so that they do not have to deal with huge risks in future. The personal credit history of a borrower is taken into consideration to predict his future financial behaviour which is extremely helpful for the lending organizations.
Credit Vision- Sometimes just a CIBIL check is not enough to know a customer’s financial habits; this is when Credit Vision comes into play. Credit Vision is a product offered by CIBIL that provides companies with a wider and deeper view of their customer base. It derives information from a massive database that goes back to over 30 months and encompasses a wide-angle study of credit performance trends, enriched data, behaviour and analytics.
CIBIL Microfinance Report- This is a first-of-its-kind product that provides micro-finance companies with detailed information about the existing and prospective customers. It enables them to have a 360-degree view of the customers’ financial cycle, including those in the unbanked population. This special kind of CIBIL check allows companies to make smart lending decisions.
Portfolio Review Report- An analysis of their customers’ portfolio allows banks and NBFCs in better risk management which, in turn, improves their own portfolio.
Why is CIBIL an important institution for the Indian Economy?
Over the past decade, the loan market in India has changed in leaps and bounds. The number of customers as well as the purchasing power of the customers has seen substantial increase. CIBIL has played a significant role in bringing about this change. It has brought financial literacy in the country and encouraged people to maintain a good credit score. CIBIL score depicts a person’s financial standing and allows banks and NBFCs to predict his future financial behaviour, on the basis of which they grant him a loan. CIBIL report is also made for commercial entities in whose name business loans are taken.
CIBIL has made the financial market more regulated by bridging the gap between lenders and borrowers. By checking their CIBIL score online, individuals can ascertain their own financial standing in the market and get a rough idea of how much they can borrow. This encourages them to maintain a good financial history.
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CIBIL Registered Office Address
The registered office of CIBIL is located in Mumbai. The address is-
TransUnion CIBIL Limited
One Indiabulls Centre, Tower 2A, 19th Floor,
Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400 013